Earned Foreign Income as LLC how enter?

[danund1]

I am a consultant who has set up a single-member LLC. I live in the US (I have not traveled outside of the US), but my client is in a foreign country and always pays me directly to my LLC bank account. They will not be sending me a W2 or any 1099s. I have other US-based clients that have sent me 1099-NECs. I am using Home & Business version.

I tried entering this income in the Less Common Income section and when I finished it said that "you can't claim the foreign earned income exclusion" however the income still shows on the 2021 Income Summary, so I'm confused if I taxes were calculated on it or if I am entering the information in the correct place.
My questions:
1. Where do I enter this foreign income given that I am a single-member LLC? On the Business Income section: General Income OR as Personal Income: Less Common Income - Foreign Earned Income and Exclusion?
2. The Foreign Earned Income and Exclusion section lists a "statement from my foreign employer" - Is there anything that must be included in this letter besides the amount they paid me? Do they list my name or LLC or does it matter in my case?

Thank you for your assistance.

[rjs · Accepted solution]

If you are doing the work in the United States it is not foreign income and is not eligible for the foreign earned income exclusion. It doesn't matter that the client who is paying you is in a foreign country. Foreign earned income is income that you earn for work that you do in a foreign country.

You enter the income as business income that was not reported on a 1099-NEC or 1099-MISC, the same as if the client were in the U.S.